When a tariff or quota on a product is removed, the action:

Question

Quizplus · Accepted Answer

When a tariff or quota on a product is removed, it benefits consumers of the product as lower trade barriers result in lower prices and more variety of goods available for them to consume. Although the producers in the protected industries may face more competition from foreign producers, it is ultimately beneficial for consumers as they can purchase the product at a lower price. The government may collect less revenue from tariffs, but this is not necessarily a benefit as it may also result in a loss of jobs and income for those dependent on the tariff revenue. The nations exporting the product may also benefit as they will have increased access to the market with lower trade barriers.

When a Tariff or Quota on a Product Is Removed